Bob Greenwood is adamant. Heavy-duty aftermarket distribution is at a crossroads.
The president and CEO at Automotive Aftermarket E-Learning Centre says the aftermarket is on the cusp of a major change, one that will impact every business within the industry whether they like it or not. And perhaps more importantly, whether they are ready for it or not.
During a presentation at the HDA Truck Pride Annual Meeting Friday in San Antonio, Greenwood spoke candidly to HDA Truck Pride’s members about the changes he sees approaching the aftermarket.
Greenwood says dropping parts margins are here to stay; and if distributors chase lowest price to close sales they are only digging their own grave.
To Greenwood, success in the rapidly changing aftermarket will require distributors to become solutions providers. To become sources of not just products, but also operational, technical, and customer service expertise.
But changing a distribution operation in the aftermarket today isn’t a two-week job. It can take years. Greenwood says if you hope to remain profitable in the future, you need to start changing today.
He notes five specific areas (vision, ability, motivation, resources and action plan) that must work in unison for a distributor’s business to change. Speaking specifically on vision, Greenwood says that’s an area where a business leader has to lead.
“Vision without action is merely a dream. Action without vision just passes time,” he says.
He advises business owners spend at least two hours per day analyzing all areas of their business and looking for areas where improvements can be made to better provide customer solutions. And as ideas morph into plans, Greenwood says it is an absolute necessity that all members of the business are informed of the plan.
“I don’t want employees to buy in,” he says. “I want them to believe.”
He uses the acronym TAP (team, accountability, perseverance) to describe a company’s commitment to change.
“Does the team know what to do when you are not there?” he says. “Everyone has to be working together.”
And as hard as it may be to create and cultivate a five-year business plan, Greenwood says sitting still is considerably worse.
“History has never been kind to people that want to keep the status quo when there is dramatic change taking place,” he says.
